3.1 The Exchange
Making NFTs Fungible
The Exchange is at the core of Omura. The spot market is where you are able to trade NFT collections. FPT Exchange is where you can freely swap between NFTs and FPT (Fractional Policy Token).
FPTs are simply tokens that represent fractional ownership of a project's NFT pool.
How does it work?
Every verified project on Omura has its own unique NFT pool. These are collections of assets from the same policy ID held in a smart contract. A user may deposit their NFTs into the pool and in return, an equal amount of FPT is minted for them. One in, one out.
The spot market is the place to trade FPT. Functionally, the price of one FPT is equivalent to the floor price of that collection, since you can always exchange one FPT for one NFT from the pool.
To withdraw from the pool, the user burns 1 FPT. This guarantees the 1:1 relationship of tokens in existence to NFTs in the pool.
We do not advise depositing high-value NFTs into a project pool. When depositing your NFTs to a pool, you are not guaranteed the same NFTs upon redemption. The exact NFTs you will receive is determined by a completely random process.
NFT Pools
Each NFT Pool is a collection of assets from a specific policy ID. These NFTs are deposited by users who would like to fractionalise their investment in a collection. Since 1 FPT is always redeemable for 1 NFT from the pool, the value of FPT is tied to the floor value of the NFTs in the pool.
You can always see the number of NFTs a pool is backed by with the 'Pool size' metric in the trade page.
Liquidity Pools
Omura's FPT Liquidity pools provide the necessary liquidity for trading FPT. By staking FPT-ADA pairs to a liquidity pool, users are facilitating smooth transactions for the whole ecosystem.
The Exchange functions much like a standard DEX. Tokens of many different projects are listed on an open market and users are able to stake these tokens for rewards.
Staking FPT (also called adding liquidity) earns LP fees. The amount of LP fees received is based on many factors such as number of trades, value of trades and share of the pool. More information on how LP fees are calculated can be found here: 3.5 Fee Structure
Upcoming features
Baskets
Baskets will allow you to group together various assets and trade fractions of them all at once. You will be able to choose the proportion of each underlying asset according to your preferences. This feature offers an easy way to diversify your exposure to different sectors of the NFT market, such as Gaming, DeFi, and Bluechip.
Yield Farming
We are hard at work adding yield farming to Omura. Users will have the opportunity to earn $OMU, Omura's upcoming native token, by contributing to liquidity pools and participating in other platform activities. Yield farming will also bring rewards from your favorite projects to boost your earnings even further. Expect more news on yield farming and $OMU as the project develops.
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